Market News

Cattle futures mostly lower waiting ahead of widespread cash business

At the Chicago Mercantile Exchange, live cattle were mostly lower, and feeders were lower ahead of the week’s direct cash business.  Feeders had additional pressure from the higher move in corn.  June live cattle closed $.77 lower at $164.27 August live cattle closed $1.02 lower at $162.57. August feeder cattle closed $1.42 lower at $233.47 and September feeder cattle closed $1.10 lower at $236.75.

It was another very quiet day for direct cash cattle business. Bids have been elusive and asking prices have been slow to surface.  Showlists for the week are mixed, higher in Nebraska/Colorado, but lower in Kansas and Texas. It’s likely significant trade volume will be delayed until midweek or later. 

At the Callaway Livestock Center in Missouri, steer calves 400 to 500 pounds were $10 to $15 higher, steers 500 to 600 pounds were steady to firm, steers 600 to 650 pounds were firm to $5 higher, and 4 pot-load of yearling steers 895 to 965 pounds sold with a higher undertone.  Feeder heifers 400 to 450 pounds were $10 to $15 higher, heifers 450 to 500 pounds were $5 to $10 higher, heifers 500 to 600 pounds were steady to firm, and heifers over 600 pounds were not well tested.  The USDA says demand was good on a heavy supply.  Steer and heifer calves sold on a very active market with a very good quality of top-end calves in the offering.  Receipts were up on the week and down on the year.  Feeder supply included 60% steers and 25% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 500 to 546 pounds brought $260 to $284.50 and feeder steers 600 to 647 pounds brought $234.50 to $256.  Medium and Large 1 feeder heifers 400 to 447 pounds brought $247 to $263.50 and feeder heifers 500 to 543 pounds brought $229.25 to $238. 

Boxed beef closed lower on light demand for heavy offerings.  Choice was $3.16 lower at $300.74 and Select was $2.15 lower at $281.28.  The Choice/Select spread is $19.46.  Estimated cattle slaughter was 126,000 head – down 1,000 on the week and even on the year. 

Lean hog futures were mostly lower on contracts’ premium to cash and ongoing concerns about demand certainty.  Jillian hogs closed $1.15 lower at $80.67 and July lean hogs closed $1.17 lower at $80.97.

Cash hog prices closed sharply higher with a solid negotiated run.   The week has started off slow for the cash hog market.  But processors got more aggressive in their procurement efforts on Tuesday and bid up to move needed numbers.  With summer grilling season just around the corner, the industry is optimistic it could add a spark to demand and provide some price support. Demand for US pork on the global market has been relatively strong, which is likely to continue.  But the industry remains cognizant of supplies of market-ready hogs.  Barrows and gilts at the National Daily Direct are $7.31 higher with a base range of $74 to $89 and a weighted average of $83.83.  Prices at the regional direct markets were not reported due to confidentiality. 

Butcher hog prices at the Midwest cash markets are steady at $60. At Illinois, slaughter sows prices were $1 higher with moderate demand for moderate offerings at $10 to $20.  Barrows and gilts were higher with moderate demand for moderate offerings at $44 to $54.  Boars ranged from $15 to $25 and $5 to $10. 

Pork values closed lower – down $1.27 at $83.50. Hams, bellies, picnics, and loins were all lower.  Ribs and butts were higher. Estimated hog slaughter was 481,000 head – up 11,000 on the week and up 5,000 on the year.